Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

One difference between partnerships and sole proprietorships is that partnerships:

cannot be formed by individuals

limit the liability of all owners to their investment

are not required to file any tax returns

have more than one owner sharing profits and losses

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Verified step by step guidance

Understand the key characteristics of sole proprietorships and partnerships. A sole proprietorship is owned by a single individual, while a partnership involves two or more individuals sharing ownership.

Recognize that partnerships are formed when two or more individuals agree to share profits and losses, typically outlined in a partnership agreement.

Note that partnerships do not limit liability for all owners to their investment. In general partnerships, owners have unlimited liability, meaning their personal assets can be used to cover business debts.

Understand that partnerships are required to file tax returns, even though the income is passed through to the partners and taxed at their individual tax rates.

Conclude that the defining feature of partnerships, compared to sole proprietorships, is the presence of more than one owner sharing profits and losses.